The Central Bank of Yemen in Aden has implemented stringent measures, including the closure of several exchange companies and facilities, as part of its ongoing campaign to enhance oversight of the banking sector and combat currency manipulation and speculation.
Central Bank Governor Ahmed Ghalib Al-Maqbuli issued a directive to revoke the license of "Al-Ittihad Money" company, which operates in the money transfer business in Lahj Governorate. This decision follows the identification of violations during an on-site inspection conducted by the bank's supervisory teams.
The Central Bank stated that the decision was based on a report from the Banking Supervision Sector and was made in accordance with the laws and regulations governing the banking sector and exchange operations, including the Anti-Money Laundering and Combating the Financing of Terrorism Law. These actions are aimed at stabilizing the banking market and curbing irregularities.
In a related development, the Governor also issued another order to suspend the license of "Bin Dabi Hwala Agent" facility located in the Al-Aram area of Habban district in Shabwah Governorate. Its premises were also ordered closed after similar violations were detected during an inspection by the Banking Supervision Sector's teams.
The Central Bank emphasized that these measures are part of a broader strategy to foster financial discipline within the exchange market, elevate adherence to banking standards, and curtail illicit activities contributing to the volatility of the currency market.
The bank reiterated its commitment to continuing on-site supervisory campaigns for exchange companies and facilities across various governorates. It assured that legal action will be taken against any entity found to be involved in violations that undermine the stability of the banking system or contribute to speculation against the national currency.
